You need to know – You should read…Florida Statute 475 for free!

YouNeedToKnowWeb500At a presentation from the folks at the DBPR who manage the state examination we learned that students are encouraged to read the statute that governs Florida real estate licensing

Continue reading

You need to know – What is a no broker relationship?

YouNeedToKnowWeb500A no broker relationship exists when a member of the public chooses not to be represented by a real estate broker, and signs a No Brokerage Relationship Disclosure Form acknowledging this fact.

In such a case the broker would facilitate the purchase or sale of real estate without entering into a single agent or transaction broker relationship

When working in a no broker relationship for the customer the broker has a duty to:

  • Deal honestly and fairly
  • Disclose all known facts that affect the value of the property
  • Account for all funds

You need to know – What is a transaction broker relationship?

YouNeedToKnowWeb500A transaction broker relationship is the presumed relationship that a licensee is working with a customer under, in the absence of a written agreement to work as a single agent or under a no brokerage relationship

In working as a transaction broker for the customer the broker has a duty to:

  • Deal honestly and fairly
  • Disclose all known facts that affect the value of the property
  • Account for all funds
  • Use skill, care and diligence
  • Present all offers and counteroffers
  • Exercise Limited Confidentiality

There may be additional duties that are mutually agreed to

You need to know – What is a single agent relationship?

YouNeedToKnowWeb500A single agent relationship exists when a broker accepts employment from a principal under a written agreement

A fiduciary relationship is created where the broker owes the following duties to the principal:

  • Confidentiality
  • Obedience
  • Loyalty
  • Disclosure

Additionally, in working as a single agent for the principal the broker must:

  • Deal honestly and fairly
  • Disclose all known facts that affect the value of the property
  • Account for all funds
  • Use skill, care and diligence
  • Present all offers and counteroffers

You need to know – What must a landlord do when receiving a security deposit or advance rent?

YouNeedToKnowWeb500When a landlord receives a security deposit or advance rent, he must notify the tenant in writing within 30 days of the manner in which the funds are being held

The landlord has three options:

  • hold the funds in a non-interest bearing account at a Florida bank
  • hold the funds in an interest-bearing account for the tenant’s benefit at a Florida bank, with the tenant receiving 75% of the interest earned or 5% simple interest

In both these cases the funds cannot be commingled with any other funds of the landlord

  • post a surety bond for the total amount of the security deposits and advance rents or $50,000 (whichever is less) and pay the tenant 5% per year simple interest

In this case the funds can be commingled with his other funds and there is no need to deposit the funds in a special account

You need to know – What is a lease?

YouNeedToKnowWeb500A lease is a legal interest in a property

The person who owns the property (the lessor) grants the person who takes the lease (the lessee) the right to occupy and use the property

A lease does not give ownership to the property

Leases can be oral or written

For a lease to be valid it must:

  • contain the names and signatures of the lessee and the lessor
  • have legally competent parties
  • have some consideration for the grant of the lease
  • include the legal description of the property
  • contain the term of the lease

The Statute of Frauds stipulates that leases of more than 1 year must be in writing and signed and witnessed by 2 people to be enforceable in court